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Court Finds Minister Tau’s Licence Process Unlawful

Dear Editor

A court judgement from the North Gauteng High Court has confirmed that the process Parks Tau, Minister of Trade, Industry & Competition, undertook to appoint a temporary lottery licence operator for the National Lottery to be unlawful. The DA warned of this in March, when Tau undertook the process.

In the interests of not disrupting lottery operations, the judgement also provided Tau five months to rectify his error.

The DA calls on Minister Tau to provide urgent clarity on the way forward following the judgement, including on the National Lotteries Commission’s appeal. The National Lotteries Commission has stated that it intends to appeal this judgement, on the grounds that it is impossible for a new operator to take over within five months.

The DA has also seen a letter dated 15th May and signed by Mr Brendan Burns, Chief Lottery Director at Ithuba Holdings, current licence holder, indicating a possible means of avoiding the cessation of lotto ticket sales when the current license expires on May 31st.

The letter states: “While the final outcome remains uncertain, ITHUBA Holdings and ITHUBA Lottery must act responsibly and prepare for the possible scenario in which ITHUBA Lottery is required to commence operations of the National Lottery for a temporary licence period”.

The current licence to Ithuba expires on 31 May 2025 and the new licence holder, which Minister Parks Tau has promised to announce by May 28th, will not be able to commence ticket sales for several months.

It is therefore almost certain that Minister Tau will again appoint Ithuba as the temporary licence holder, which Tau must urgently clarify.

Regards

Toby Chance MP
DA Spokesperson on Trade, Industry & Competition

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